American Malaise
The overall American economy is experiencing a period of strong recovery and growth following the disruptions caused by the COVID-19 pandemic. Here are some key aspects of the current economic landscape:
Economic Growth
The U.S. economy has shown robust growth, with real GDP increasing at an annual rate of 3.1% in the third quarter of 2024, following a 3.0% increase in the second quarter [3].
Consumer spending has been a significant driver of this growth, with personal consumption expenditures rising by $81.3 billion (0.4%) in November 2024 [3].
Inflation and Wages
Annual inflation is approaching the Federal Reserve's target, indicating a stabilization in prices without triggering a recession [2].
Non-managerial real wages have exceeded pre-pandemic trends, contributing to increased consumer confidence and spending [2].
Investment and Trade
Investment in factories is at record levels, reflecting business confidence in the economy [2].
The U.S. has become a net exporter of petroleum products, which is a notable shift in its trade balance [2].
Challenges Ahead
Despite the positive outlook, there are uncertainties regarding the economic policies of the incoming administration, which could impact trade and immigration policies [2].
Potential tariffs and government spending cuts could pose risks to future growth, particularly if implemented aggressively [2].
Consumer Behavior
Households are expected to continue spending, supported by rising incomes and the ability to take on new debt, although there are concerns about the long-term effects of tariffs on purchasing power [2][3].
In summary, the American economy is currently on a positive trajectory, characterized by strong growth, rising consumer spending, and a favorable inflation outlook. However, upcoming policy changes and potential trade barriers could introduce challenges that may affect this momentum.
However, despite these glowing statistics most Americans are skeptical and do not feel reassured by the statistics. Why is this occurring?
An overall suspicion about the numbers being wrong or manipulated for some other dark purpose. This may be due to the recent failings of the executive branch of government.
The COVID-19 pandemic created an atmosphere of panic, social distancing, and mass vaccinations repeated once or more a year.
Distrust of old established government agencies including the FDA, and CDC, and mistaken advice from the National Institutes of Health.
The failure to deal with Long-COVID in a meaningful way.
Runaway health costs, and the murder of a health insurance CEO.
The failure of large health insurance companies to use unethical denials of services to maximize profits and the expense of patients and providers has increased administrative costs for providers and hospitals to appeal denials.
The failure of government (Federal Trade Commission) to regulate monopolistic insurers. (United Health Group).
Big Pharma, promotes vaccinations, and drug usage with large media campaigns to maximize their profits.
The uncertainty of the Russia-Ukraine ‘special military operation’
The ongoing conflict in the Middle East.
Multiple conflicts in Africa (Sudan), Mass emigration from Syria.
Climate change and increasing global warming, with numerous highly intense hurricanes, tornadoes, and floods.
Sweeping changes in sexual mores, including gender dysmorphia
The upcoming presidency of former President Donald Trump, despite serious issues about his business practices.
Unaffordable housing
The prolonged period of savings for real estate loans.
The disparity between the haves and have-nots. A reversal of previous trends.
The infusion of money during the COVID pandemic, as well as the Recovery Act.
Holiday spending grew by 4% but 35% of it was with credit cards
The bottom line is the 16 reasons exhibited above.
